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India Metals & Minerals Industry Report - 2014

India Metals & Minerals Industry Report - 2014

This report profiles India’s metals and minerals industry, discussing market trends and outlook through 2014 and beyond. The report also highlights leading players in the sector including Hindalco Industries Ltd, Hindustan Zinc Ltd and Hindustan Copper Ltd.

The Indian metals and minerals sector is one of the important constituents of economic growth in India. The country has been a major global player in the sector in terms of manufacturing, consumption and trading in the last few years. India was ranked amongst the largest producers of aluminum and zinc in the world. The sector comprises of mining, production and trading companies. The big metal players dominate the industry and thus form a sort of oligopoly.

FY14 was a difficult year for the sector due to lower demand because of the country’s industrial slowdown. Global situation for metals and minerals was also adverse with spot prices of several metals going south. The value of India’s mineral production saw a decline as a result of the prevailing global situation.

However, the prices of metals grew in FY15 which together with a spurt in demand brought some relief to the sector. The index for production of basic metals recorded a five-year high in growth, while mining finally saw growth after three successive years of decline.

The outlook for the Indian metals and minerals sector looks stable in the near term because of a demand uptick and decline in inflation. Low per capita metal consumption, vast mineral resources and growing construction sector will act as drivers for the sector in the long term. Reforms and clearances in the mining sector will further add to the growth of this sector.

Key Points:

• During FY09-13, the metallic minerals segment grew at a CAGR of 16%. However, it recorded a steep y/y decline of 14% in FY14. The non-metallic minerals segment which was valued at INR 344bn grew at a CAGR of 18% during 2009-13, but also recorded a decline in FY14

• During 2008-13, the country’s production capacity of aluminium grew at a CAGR of 7.4% while the actual production grew at a CAGR of 6.8%. However, it recorded a steep decline of 12% y/y in FY14.

• During 2008-13, both existing production capacity and actual production of copper in the country remained stagnant. The production saw a spurt in FY13 followed by a steep decline in FY14.

• India's index of industrial production (IIP) saw a decline of 0.1% in FY14. Basic metals recorded a growth of only 0.3% while mining declined by 0.8% y/y. However, the industry saw a revival in FY15. Basic metals recorded a five-year high growth of 12% y/y while mining finally saw growth after three successive years of decline.

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Minerals
2.2.1 Metallic minerals
2.2.2 Non-metallic minerals
2.2.3 Minor minerals
2.3 Metals
2.3.1 Aluminium
2.3.2 Copper
2.3.3 Zinc
2.3.4 Other metals
2.4 Global prices
2.5 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Hindalco Industries Limited (HIL)
3.1.2 Hindustan Zinc Limited (HZL)
3.1.3 Hindustan Copper Limited (HCL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts

Table 1: Major metallic, non-metallic and minor minerals in India
Table 2: Key financials of major metal players (non-ferrous) of India
Table 3: Key features of MMDR bill
Table 4: Key financial ratios of the leading players

Chart 1: Size of various segments of mining industry in India
Chart 2: Size of metallic minerals and non-metallic minerals sector
Chart 3: FDI in Indian metallurgical industries
Chart 4: Results of the Indian general elections
Chart 5: Current account deficit and fiscal deficit
Chart 6: Changing demographics of India
Chart 7: Quarterly GDP growth rate-India
Chart 8: Average Monthly USD to INR Exchange Rate
Chart 9: Inflation-India
Chart 10: Repo rate
Chart 11: Contribution of industries in IIP by weight
Chart 12: Y/Y change in index of industrial production
Chart 13: Total value of mineral production
Chart 14: Share of states by value of mineral production
Chart 15: Share of metallic minerals (ores) by value
Chart 16: Annual production of metallic minerals
Chart 17: Share of non-metallic minerals by value
Chart 18: Annual production of non-metallic minerals
Chart 19: Share of minor minerals by value
Chart 20: Share of states by value of minor mineral production
Chart 21: Y/Y growth in cumulative production of major metals
Chart 22: Annual capacity and production of aluminium during last five years
Chart 23: Share of production capacity of aluminium in India
Chart 24: Aluminium production in the country
Chart 25: Annual capacity and production of copper
Chart 26: Share of production capacity of copper in India
Chart 27: Breakup of copper production by companies
Chart 28: Annual capacity and production of zinc
Chart 29: Share of production capacity of zinc
Chart 30: Breakup of zinc production by companies
Chart 31: Annual capacity and production of lead
Chart 32: Share of production of gold in India
Chart 33: Commodity metals price index monthly price
Chart 34: Aluminium monthly price
Chart 35: Zinc monthly price
Chart 36: Gold prices- London afternoon fixing
Chart 37: Breakup of company’s revenue by segments
Chart 38: Sales of HIL
Chart 39: Profit margin of HIL
Chart 40: HZL segments by sales value
Chart 41: Sales of HZL
Chart 42: Profit margin of HZL
Chart 43: Copper production by HCL
Chart 44: Net sales of HCL
Chart 45: Profit margin of HCL

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